At next year's draft the loser serves: fetching drinks, refilling snacks, running the grill, and answering to a title like 'the intern' or 'beer boy', usually in a league-chosen outfit (tuxedo, maid costume, pink sash). They draft their own team between service calls, which shows in their roster. The role is the origin story of half the two-time losers in America.
Budget note: this one costs nothing but dignity, which makes it a strong pick for leagues that would rather spend the pot on the champion than on the loser's downfall.